BILL NUMBER: SB 1888	CHAPTERED  09/29/00

	CHAPTER   891
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 28, 2000
	PASSED THE SENATE   AUGUST 30, 2000
	PASSED THE ASSEMBLY   AUGUST 28, 2000
	AMENDED IN ASSEMBLY   AUGUST 24, 2000
	AMENDED IN ASSEMBLY   AUGUST 7, 2000
	AMENDED IN ASSEMBLY   JUNE 29, 2000
	AMENDED IN SENATE   MARCH 27, 2000

INTRODUCED BY   Senator Hayden
   (Coauthors:  Senators Figueroa and Solis)
   (Coauthors:  Assembly Members Bock, Keeley, and Knox)

                        FEBRUARY 24, 2000

   An act to amend Section 6108 of the Public Contract Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1888, Hayden.  Public contracts:  sweatshop labor.
   Under existing law, state agencies must provide in every contract
for procurement that no equipment, materials, or supplies provided
under the contract are produced by forced labor, convict labor, or
indentured labor under penal sanction.  This prohibition does not
apply to procurement related to a public works contract.
   This bill would require the prohibition to also include abusive
forms of child labor or exploitation of children in sweatshop labor,
as defined, and would state the intent of the Legislature to adopt a
procurement policy prohibiting procurement of materials produced with
the use of these forms of labor.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  It is the intent of the Legislature to establish a
procurement policy of the State of California prohibiting purchase of
any materials, goods, or services produced by or with the benefit of
forced labor, convict labor, indentured labor under penal sanction,
abusive forms of child labor, or exploitation of children in
sweatshop labor.
  SEC. 2.  Section 6108 of the Public Contract Code is amended to
read:
   6108.  (a) (1) Every contract entered into by any state agency for
the procurement of equipment, materials, or supplies, other than
procurement related to a public works contract, shall require that a
contractor certify that no foreign-made equipment, materials, or
supplies furnished to the state pursuant to the contract have been
produced in whole or in part by forced labor, convict labor,
indentured labor under penal sanction, abusive forms of child labor
or exploitation of children in sweatshop labor, or with the benefit
of forced labor, convict labor, indentured labor under penal
sanction, abusive forms of child labor or exploitation of children in
sweatshop labor.  The contractor shall agree to comply with this
provision of the contract.
   (2) The contract shall specify that the contractor is required to
cooperate fully in providing reasonable access to the contractor's
records, documents, agents or employees, or premises if reasonably
required by authorized officials of the contracting agency, the
Department of Industrial Relations, or the Department of Justice to
determine the contractor's compliance with the requirements under
paragraph (1).
   (b) (1) Any contractor contracting with the state who knew or
should have known that the foreign-made equipment, materials, or
supplies furnished to the state were produced in violation of the
conditions specified in subdivision (a) when entering into a contract
pursuant to subdivision (a), may, subject to subdivision (c), have
any or all of the following sanctions imposed:
   (A) The contract under which the prohibited equipment, materials,
or supplies were provided may be voided at the option of the state
agency to which the equipment, materials, or supplies were provided.

   (B) The contractor may be assessed a penalty which shall be the
greater of one thousand dollars ($1,000) or an amount equaling 20
percent of the value of the equipment, materials, or supplies that
the state agency demonstrates were produced in violation of the
conditions specified in paragraph (1) of subdivision (a) and that
were supplied to the state agency under the contract.
   (C) The contractor may be removed from the bidder's list for a
period not to exceed 360 days.
   (2) Any moneys collected pursuant to this subdivision shall be
deposited into the General Fund.
   (c) (1) When imposing the sanctions described in subdivision (b),
the contracting agency shall notify the contractor of the right to a
hearing if requested within 15 days of the date of the notice.  The
hearing shall be before an administrative law judge of the Office of
Administrative Hearings in accordance with the procedures specified
in Chapter 5 (commencing with Section 11500) of Part 1 of Division 3
of Title 2 of the Government Code.  The administrative law judge
shall take into consideration any measures the contractor has taken
to ensure compliance with this section, and may waive any or all of
the sanctions if it is determined that the contractor has acted in
good faith.
   (2) The agency shall be assessed the cost of the administrative
hearing, unless the agency has prevailed in the hearing, in which
case the contractor shall be assessed the cost of the hearing.
   (d) (1) Any state agency that investigates a complaint against a
contractor for violation of this section may limit its investigation
to evaluating the information provided by the person or entity
submitting the complaint and the information provided by the
contractor.
   (2) Whenever a contracting officer of the contracting agency has
reason to believe that the contractor failed to comply with the
requirements under paragraph (1) of subdivision (a), the agency shall
refer the matter for investigation to the head of the agency and, as
the head of the agency determines appropriate, to the Director of
Industrial Relations or the Attorney General.
   (e) (1) For purposes of this section, the term "forced labor"
shall have the same meaning as in Section 1307 of Title 19 of the
United States Code.
   (2) "Abusive forms of child labor" means any of the following:
   (A) All forms of slavery or practices similar to slavery, such as
the sale and trafficking of children, debt bondage, and serfdom and
forced or compulsory labor, including forced or compulsory
recruitment of children for use in armed conflict.

   (B) The use, procuring or offering of a child for prostitution,
for the production of pornography, or for pornographic performances.

   (C) The use, procuring or offering of a child for illicit
activities, in particular for the production and trafficking of
illicit drugs.
   (D) All work or service exacted from or performed by any person
under the age of 18 either under the menace of any penalty for its
nonperformance and for which the worker does not offer oneself
voluntarily or under a contract the enforcement of which can be
accomplished by process or penalties.
   (E) All work or service exacted from or performed by a child in
violation of all applicable laws of the country of manufacture
governing the minimum age of employment, compulsory education, and
occupational health and safety.
   (3) "Exploitation of children in sweatshop labor" means all work
or service exacted from or performed by any person under the age of
18 years in violation of more than one law of the country of
manufacture governing wage and benefits, occupational health and
safety, nondiscrimination, and freedom of association including the
right to organize unions to bargain collectively.
